We are working with interested parties from the banking and broader finance sectors to propose changes to financial regulations that will reduce the infrastructure investment gap, achieve climate and transition objectives, and promote global financial stability. These solutions are to be advanced with the G20 and standard-setting bodies.
As an independent organisation, formed by the G20 and free of commercial objectives, the GI Hub is trusted to facilitate collaboration and dialogue between the private and public sectors on these issues.
The TIC-R initiative is advancing reforms that will recognise the risk sensitivities of infrastructure as a discrete asset class in the Basel III framework, the international regulatory framework for banks. These reforms are necessary because:
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Investors group financial instruments that have similar characteristics (e.g. similar risk) and performance (e.g. similar returns on investment) into asset classes, and then build portfolios of asset classes that are diversified and optimised to meet their objectives or the objectives of their clients. A group of individual assets that can’t be placed into a defined asset class is more difficult for investors to assess, and thus is viewed as more risky, and is less likely to attract investment.
In 2018, the G20 Eminent Persons Group recognised that several factors were blocking the establishment of infrastructure as a distinct asset class: the heterogeneous nature of infrastructure assets, insufficient data on the investment performance of these assets, and lack of a strong pipeline of continuous projects. Under the Argentinian Presidency in 2018, the G20 endorsed a Roadmap to Infrastructure as an Asset Class.
In our role supporting the G20’s infrastructure agenda, the GI Hub is acting on the Eminent Persons Group recommendation of a case for infrastructure as an asset class, distinct from generic corporate exposures with its own differentiated risk profile, in order to increase private investment in infrastructure and help fill the infrastructure gap with sustainable, resilient, and inclusive infrastructure.
The Infrastructure Regulations Advisory Council (IRAC) is composed of members from leading commercial banks that are financing infrastructure worldwide and subject matter specialists. The council is dedicated to examining the conduciveness of regulatory frameworks for infrastructure investments and recommending prudent reforms to address the regulatory roadblocks.
Kuveshen Chetty is passionate about risk management and its critical role in protecting and growing the financial services sector. As a prominent advocate of credit portfolio management in South Africa, he has first-hand experience of the need for greater understanding on the interplays of various risk types in effective financial resource management.?
With more than two decades’ experience, including several years spent establishing and optimising active credit portfolio management functions, Kuveshen brings significant experience and a global and regional network. He holds a Bachelor of Commerce (Honours in Finance), is a Member of the Institute of Financial Markets, a Certified Financial Risk Manager, and a Chartered Alternative Investment Analyst. He is Head of Portfolio Management & Analytics at Nedbank CIB, Co-Director of the Johannesburg Chapter for the Global Association of Risk Professionals, and a Director at the International Association of Credit Portfolio Managers.
Kuveshen Chetty is passionate about risk management and its critical role in protecting and growing the financial services sector. As a prominent advocate of credit portfolio management in South Africa, he has first-hand experience of the need for greater understanding on the interplays of various risk types in effective financial resource management.?
With more than two decades’ experience, including several years spent establishing and optimising active credit portfolio management functions, Kuveshen brings significant experience and a global and regional network. He holds a Bachelor of Commerce (Honours in Finance), is a Member of the Institute of Financial Markets, a Certified Financial Risk Manager, and a Chartered Alternative Investment Analyst. He is Head of Portfolio Management & Analytics at Nedbank CIB, Co-Director of the Johannesburg Chapter for the Global Association of Risk Professionals, and a Director at the International Association of Credit Portfolio Managers.
Rémy Haimet has extensive experience in investment banking, including transaction origination, structuring, execution, and placement. He is a specialist in the design and implementation of highly customised, large-scale financing with large corporates across the world.
Rémy joined Société Générale in 1987, and has been Managing Director, Global Banking & Advisory since 2011. Remy is responsible for prudential regulation within the bank’s wholesale banking division. This includes following and analysing the constant stream of new regulations, participating in industry efforts to improve proposed regulations, ensuring adequate recognition of risk-mitigation structures (specialised lending and securitisation), and implementing new rules and internal cost allocation.
Rémy holds an MBA from HEC Paris.
Rémy Haimet has extensive experience in investment banking, including transaction origination, structuring, execution, and placement. He is a specialist in the design and implementation of highly customised, large-scale financing with large corporates across the world.
Rémy joined Société Générale in 1987, and has been Managing Director, Global Banking & Advisory since 2011. Remy is responsible for prudential regulation within the bank’s wholesale banking division. This includes following and analysing the constant stream of new regulations, participating in industry efforts to improve proposed regulations, ensuring adequate recognition of risk-mitigation structures (specialised lending and securitisation), and implementing new rules and internal cost allocation.
Rémy holds an MBA from HEC Paris.
Alper Kilic joined Standard Chartered Bank in 2008 and has held various leadership roles including Regional Head of Corporate Finance, Europe, and Regional Head of Loan Syndications, Africa. With operations across eight continents, Alper oversees the provision of financial advisory and financing solutions to support clients on a wide range of infrastructure projects, as well as the delivery of export credit agency-backed financing across different geographies and industries.
Alper has long-established transaction experience in acquisition financing, structured loans, project finance, and loan syndications. He has extensive expertise working with multilateral agencies, development finance institutions, and export credit agencies, and has worked with clients across infrastructure, power, oil and gas, telecommunications, financial institutions, and the public sector.
Alper has an MBA from the University of Dallas and a BSc in Metallurgical Engineering and Material Science from the Middle East Technical University in Turkey.
Alper Kilic joined Standard Chartered Bank in 2008 and has held various leadership roles including Regional Head of Corporate Finance, Europe, and Regional Head of Loan Syndications, Africa. With operations across eight continents, Alper oversees the provision of financial advisory and financing solutions to support clients on a wide range of infrastructure projects, as well as the delivery of export credit agency-backed financing across different geographies and industries.
Alper has long-established transaction experience in acquisition financing, structured loans, project finance, and loan syndications. He has extensive expertise working with multilateral agencies, development finance institutions, and export credit agencies, and has worked with clients across infrastructure, power, oil and gas, telecommunications, financial institutions, and the public sector.
Alper has an MBA from the University of Dallas and a BSc in Metallurgical Engineering and Material Science from the Middle East Technical University in Turkey.
Chris McHugh is a Senior Advisor to the International Association of Credit Portfolio Managers (IACPM) and also runs an independent consulting business. He was the founder and Director of the Centre for Sustainable Finance at The London Institute of Banking & Finance and a faculty member lecturing on derivatives, risk management, and sustainability.
Chris has more than 30 years’ experience in financial markets, structuring and trading fixed income derivatives across a range of asset classes. His principal interests relate to development and sustainable finance and the interaction of public and private sector financial markets, in particular the mobilisation of private capital in support of the Sustainable Development Goals.
Chris holds a PhD from Southampton University, an MBA from London Business School, and an MA from Cambridge University.
Chris McHugh is a Senior Advisor to the International Association of Credit Portfolio Managers (IACPM) and also runs an independent consulting business. He was the founder and Director of the Centre for Sustainable Finance at The London Institute of Banking & Finance and a faculty member lecturing on derivatives, risk management, and sustainability.
Chris has more than 30 years’ experience in financial markets, structuring and trading fixed income derivatives across a range of asset classes. His principal interests relate to development and sustainable finance and the interaction of public and private sector financial markets, in particular the mobilisation of private capital in support of the Sustainable Development Goals.
Chris holds a PhD from Southampton University, an MBA from London Business School, and an MA from Cambridge University.
Ettie Philitas is Head of Infrastructure Debt for J.P. Morgan Asset Management. He is also a member of the Infrastructure Debt Group’s Investment Committee and a Portfolio Manager for J.P. Morgan Asset Management’s Private Credit solutions. He was previously an Investment Director with Africa50’s Project Finance team where he originated and managed infrastructure investments across Africa. Prior to his role at Africa50, Ettie was an Associate with the Private Credit team at KKR. He has also worked with the Private Debt team at Muzinich & Co. and with the Leveraged Finance Origination & Restructuring group at Credit Suisse, where he advised clients on over USD19 billion of high-yield and leveraged loan financings. Ettie holds a B.A from Princeton University and an MBA in Finance from the Wharton School of the University of Pennsylvania.
Ettie Philitas is Head of Infrastructure Debt for J.P. Morgan Asset Management. He is also a member of the Infrastructure Debt Group’s Investment Committee and a Portfolio Manager for J.P. Morgan Asset Management’s Private Credit solutions. He was previously an Investment Director with Africa50’s Project Finance team where he originated and managed infrastructure investments across Africa. Prior to his role at Africa50, Ettie was an Associate with the Private Credit team at KKR. He has also worked with the Private Debt team at Muzinich & Co. and with the Leveraged Finance Origination & Restructuring group at Credit Suisse, where he advised clients on over USD19 billion of high-yield and leveraged loan financings. Ettie holds a B.A from Princeton University and an MBA in Finance from the Wharton School of the University of Pennsylvania.
To date, the IRAC has convened to deliberate on various critical issues and initiatives, including:
These efforts will help support private investment in infrastructure while maintaining financial stability, as recognised in the recent G20 commissioned Independent Expert Group report on Strengthening Multilateral Development Banks – The Triple Agenda – A Roadmap for Better, Bolder, and Bigger MDBs.
Through these discussions, IRAC aims to support detailed technical analysis, development of innovative solutions and strengthen evidence base for policy and/or regulatory reforms.
Overcoming regulatory barriers to using credit-risk mitigation instruments to close infrastructure deficits
Banks are critical for closing infrastructure deficits, but banking regulations are not supportive
Better banking regulations can enhance infrastructure’s role in the green transition of economies
We’re analysing the effects of regulatory capital charges on greenfield infrastructure financing
Infrastructure debt remained resilient during the pandemic
Greenfield infrastructure struggles to attract private investment
Should there be a differentiated regulatory capital treatment for infrastructure investments?
Infrastructure equities are resilient to inflation shocks amidst a sharp decline in equity markets
Infrastructure debt passed the stress test of the COVID-19 pandemic
The European Banking Authority (EBA) Infrastructure Supporting Factor, introduced in 2020 under Capital Requirements Regulation (CRR) Article 501a, is part of a set of measures designed to mitigate the impact of COVID-19 on European recovery.
The European Insurance and Occupational Pensions Authority (EIOPA) introduced a new asset class of qualifying infrastructure investments in 2015.
The International Association of Insurance Supervisors (IAIS) formed an Infrastructure Taskforce in 2020.
The insurance sector is pioneering the recognition of infrastructure as an asset class.
The International Association of Insurance Supervisor (IAIS) is amending the international insurance regulations to distinctly recognise infrastructure as an asset class and introduce regulatory rules that take into account the unique risk profile of the asset class. The IAIS Infrastructure Taskforce concluded a need for this amendment after an extensive review of the data on infrastructure and the definition of infrastructure.
A report commissioned by the GI Hub in 2020 examined whether capital charges for infrastructure debt should be lower than the charges currently required by the Solvency II and IAIS regulatory frameworks.